LEDN – a Toronto-based global Bitcoin lending platform – has announced a unique Bitcoin-backed mortgage product. This follows a $ 70 million Series B funding round that now values the company at $ 540 million.
Mortgages Backed by Bitcoin
As revealed by LEDN, this funding round was led by 10T Holdings and included new investors such as Raptor Group, Golden Tree Asset Management, and FJ Labs. Furthermore, Dan Tapiero – CEO and Managing Partner of 10T Holdings – plans to join LEDN’s board of directors.
The new funds will be used for a variety of purposes, including strengthening LEDN’s balance sheet and supporting its new bitcoin-backed mortgage product. The mortgage will allow borrowers to provide an equal mix of Bitcoin and real estate as collateral for the purchase of more goods.
This structure is designed to use the “stability” of real estate as a buffer against Bitcoin’s current volatility. Indeed, the primary cryptocurrency fell 14% last week, spurred precisely by a liquidation cascade of $2.5 billion.
Adam Reeds – co-founder and CEO of LEDN – acknowledged the limited opportunities available to Bitcoin HODLers to qualify for mortgages.
“Our clients want to diversify their portfolio in order to protect their wealth and then utilize that wealth for instances such as purchasing a home, but one should not come at the expense of the other,” he said regarding the product.
LEDN’s growth
LEDN has seen substantial growth over the past year, increasing its holdings on the platform to $ 1.7 billion, an increase of 4000% from the third quarter of 2020. Meanwhile, its base d users has been multiplied by 10.
LEDN currently offers Bitcoin and USDC borrowing/savings products. It allows people to secure funding without a credit score, instead using overcollateralized Bitcoin loans to ensure profit with every customer. Using a LEDN account, users can earn over 6% APY on their first 0.5% Bitcoin, and 9.5% APY on any amount of USDC. These rates change monthly, however.
So far, the platform has become remarkably popular with Latin American investors, who make up 44% of its customer base.
